His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (24) of 2024, amending certain provisions of Law No. (4) of 2018 pertaining to the establishment of the Financial Audit Authority.
In the new law, Articles 34, 35, and 36 of the original law have been replaced with new provisions regarding the investigation of violations and the imposition of disciplinary penalties on offending employees, as well as the establishment of a grievance committee.
Article 34 amendments
Sheikh Mohammed approved the amendments to Article (34) of Law No. (24) of 2024, which grants the director-general of the Financial Audit Authority the authority to take several actions against employees to address misconduct. This includes suspending them, confiscating relevant documents, or dismissing investigations if they have no foundation or lack evidence.
The director-general minor may also dismiss violations with disciplinary actions instead of prosecution. If a criminal offense is confirmed, the case must be referred to the Dubai Public Prosecution. Travel bans and asset freezes can last up to three months or longer if necessary.
Employees can also make appeals after three months unless there is a valid reason to appeal sooner. Parties can reach a settlement if the misappropriated funds and profits are recovered, which would close the investigation without prosecution but still allow for disciplinary actions.
Article 35
Sheikh Mohammed approved the amendments to Article (35), which empowers the director-general of the Financial Audit Authority to assess whether disciplinary penalties for employees are commensurate with the gravity of the violation. If appropriate, the authority notifies the entity to approve the penalty. If not, the director-general may request a stricter penalty, with the new decision due to the authority within seven days. Non-compliance results in referral to the Central Violations Committee.
Furthermore, the update to Article (35) also establishes the independent Central Violations Committee, which includes three members that the authority’s director-general appoints to review cases where entities fail to comply with penalty adjustments and to address violations by senior officials. The committee can uphold, increase, or dismiss penalties according to evidence. Both employees and senior officials can appeal the committee’s decisions within 15 days by submitting a grievance to the grievances committee as stipulated by law.
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Article 36
Sheikh Mohammed also approved the amendments to Article (36), which establishes a permanent ‘Grievances Committee’ within the Financial Audit Authority. The authority’s director-general appoints the committee. The committee consists of a chairperson, a CEO from a government entity, and representatives from the authority and the Supreme Legislation Committee.
This committee reviews grievances from employees and officials facing disciplinary penalties from the Central Violations Committee and addresses their objections. The chairperson of the committee will define the committee’s procedures and powers. The decisions the Grievances Committee makes are final and are not up for appeal administratively. However, appellants may seek judicial recourse. The new law is effective from the date of its issuance.
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